Sharewatch : How We Pick Winners

From little acorns...

All research is produced "in-house"

We do not employ contract writers

The information is exclusive (we do not syndicate our information like others)

Picking winning stocks from smaller companies is never easy, especially when equity markets are nervous and volatile. Identifying winners from losers takes a sound method, careful analysis, informed discrimination and keen radar for the market dynamics that unleash growth opportunities. It's a tall order but precisely what Small Company Sharewatch has been doing successfully for the past 24 years.

When meeting a company and investigating its growth potential, Sharewatch always seeks to find out particular facts. It has only been after many years of trial and error that we have been able to refine our questions - and we are never afraid to ask the difficult ones. From these questions, Sharewatch determines whether the company has:

Potential market leadership with a new product or service

The ability to protect its competitive advantage

A strong income-generation base and the ability to continue to deliver revenues

High levels of repeat income (no other newsletter focuses on this as much as we do!)

Strong, able and innovative management

Ability to lever current products and services into new markets without significantly expanding the market base

To our mind, having answers to these questions is one-dimensional and is of limited measure unless you have the experience to go with it. You may find it surprising but most journalists and those in the financial press have usually only been in their jobs for under two years, are too pressed to meet copy deadlines, have little time to question management and merely rehash press releases. This certainly isn't the case at Sharewatch.

Regular updates on past recommendations

Critics often argue that tipsters forget about their losers. Rest assured, once a share has been profiled by Sharewatch, until the moment we say "sell," we'll continue to provide regular updates on its progress. So you'll always have the information you need to decide whether to increase your stake, hold steady, decrease it or get out altogether for something new.

Information and advice given in Small Company Sharewatch and The Momentum Investor are in general terms only and do not constitute personal advice to any investor. Published by Equitylink Ltd. Remember, share prices and the income from them may go down as well as up. Past performance is no indication of future success. Investing in equities can lose you part or all of your capital. Smaller company shares can by their nature can be relatively illiquid and thus hard to trade. This makes investing in small caps riskier than in blue chips. Investors should seek advice from their stockbroker if any points are unclear.